BIZ-EVEREADY-STAKE-SALE(COR)

The B M Khaitan-led Williamson

Magor Group has mandated Kotak Mahindra Bank to find a

strategic partner for its flagship Eveready Industries India

Ltd (EIIL), a dry cell batteries and flashlights major, and is

seeking a company valuation of Rs 3,000-4,000 crore, industry

sources said Friday.

The group, however has "no plans" to completely exit

from the company which had a topline of about Rs 1,450 crore

last fiscal, and is expecting revenues of Rs 1,600 crore this

year.

"We have mandated Kotak Mahindra for a strategic

partner in Eveready for flashlights and battery business,"

sources close to the development told PTI declining to be

identified.

The Williamson Magor Group, however, is yet to decide

if it will retain a controlling or a minority stake after

Eveready's restructuring, sources said.

It would depend on final negotiations, they added.

The Khaitans presently hold 45 per cent stake in the

company.

Of late, the management of Eveready Industries has

been trying to convert itself into an FMCG company by

diversifying into new areas such as electrical products, small

appliances and lighting by following an "asset-light" model.

The Williamson Magor Group consists of the worlds

largest bulk tea producer McLeod Russel, Kilburn Engineering

and McNally Bharat.

McLeod Russel has also been divesting many of its tea

estates in India.

The Khaitans acquired Eveready brand from Union

Carbide Corporation in the early 1990s.